Lyft Says It Has a Deal With Magna International To Develop and Build Driverless Cars for its Network and Anyone Else
Magna International and Lyft announced this week they will collaborate on developing and manufacturing self-driving systems that will be used in a Lyft ridesharing fleet, but will also make the technology available for other car manufacturers.
Magna, a Canadian company that is one of the world’s biggest automotive suppliers, said it will invest $200 million in Lyft, which is raising private equity. The Magna investment will raise San Francisco-based Lyft’s valuation to $11.7 billion.
“Together with Magna, we will accelerate the introduction of self-driving vehicles by sharing our technology with automotive OEMs (original equipment manufacturers) worldwide,” said Lyft CEO Logan Green. “This is an entirely new approach that will democratize access to this transformative technology.”
Lyft will lead the work on the self-driving system at its Palo Alto-based self-driving engineering center. Aurora, Ontario-based Magna will lead manufacturing and join Lyft’s development team onsite in Palo Alto, the two companies said.
“There is a new mobility landscape emerging and partnerships like this put us at the forefront of this change,” said Swamy Kotagiri, Magna Chief Technology Officer. “Lyft’s leadership in ridesharing and Magna’s automotive expertise makes this strategic partnership ideal to effect a positive change as a new transportation ecosystem unfolds.”
Magna is the largest auto parts manufacturer in North America.
Lyft’s main U.S. competitor, Uber, has been testing driverless Volvos for giving rides in San Francisco, Tempe, Ariz., and Pittsburgh. Uber has said it will buy nearly 25,000 Volvos next year and add its own technology to make them driverless.